VAT
What the people say about...
By Zoisa Fraser
Stabroek News
November 6, 2006
The Value Added Tax (VAT) is to be implemented from January 1, 2007. This is a tax on the consumption of goods and services and replaces a number of other taxes. Are you aware of VAT? And are you prepared for it? We asked several persons these questions and here is what they said.
Carleen Khan, self-employed
`I don't know much about VAT but I have heard that business people … are being urged to get registered for this system. I don't believe that the ordinary man will benefit from this because they will have to pay a higher tax. If they are paying 16% on the items they buy it means that the consumers will be paying a higher price. We are not ready for VAT because our economy is not strong enough'.
Sherlock Heywood, businessman
`This is a case where tax is added to raw materials resulting in a finished product that makes VAT applicable to that product. I don't believe that Guyana is ready for VAT because we don't have the economic activity to support it. What needs to be done is that the 10% tax needs to be retained and VAT should be forgotten for now. VAT will just create more taxes. Most Guyanese have a small salary and we have a weak currency. To go to VAT is to ask people to pay more taxes. I am not prepared for it. Whoever are the persons that have an economic interest in Guyana, those are the persons who will be affected by VAT in the long run'.
Courtney Davis, bus driver
`My nephew told me about VAT the other day. He said that a lot of people would suffer because the tax is something like what they have in New York where when you have to purchase an item in the store you have to pay additional money in the form of tax. Before my nephew told me about VAT I knew nothing about it. I don't think it is right to implement this tax because Guyana is not ready for it. I think that it is only being introduced because those in authority want Guyanese to pay back the loans that were taken by Guyana. All Guyanese will punish when January 1 comes and the cost of living will go way up'.
Merlyn Scott, housewife
`I don't pay much attention to it. I just know that it is a tax that will be implemented from January 1. VAT will affect me because when you go to the store to purchase something you will have to pay an additional price. I don't think that Guyana is prepared for this sort of thing. My husband and my daughter who works were talking about VAT the other day. They were saying that Guyana is not ready for it. VAT is applicable in countries that are more developed'.
Caroline Mendonca, unemployed
`I haven't heard much about VAT but I know that it is an additional tax. I don't think that VAT will affect me because it wouldn't be much more money that you will be paying for items. In my opinion Guyana is ready for VAT but I don't think that Guyanese understand it. VAT needs to be advertised more'.
Tarique Orderson, bank teller.
`I don't know much about it. All I know is that it will be used to replace some existing taxes. I don't know if Guyana is ready for VAT. I think that when it comes it will affect me. The other day I was looking up VAT with some friends and an AT 192 Carina, which sells for $1.4 M will cost $2M with VAT. That I think is a very big increase. The question is, will it work when it comes?
Conway Douglas, vendor
`I know that VAT is supposed to replace the other existing taxes and it is supposed to be a better system but I am afraid that it will be very hard on consumers especially in terms of prices for food and clothing, two basic necessities. I think that there is need for a more stringent education campaign on VAT for the general public because even though much is being said about it, little is being understood about it by the ordinary man, who is mostly likely the one that will be affected by the new tax. Guyana is not ready for VAT. I don't know why food and clothing weren't exceptions or even given lesser tariffs, taking into consideration that poor people have children that have to go to school. The government should be caring and look after the people. They are always saying that they are looking after the working class of people'.
Robin Phillips
`From the information on television, what I understand about VAT is that there really would not be any tax added to the item. I think that it will benefit each of us especially in infrastructure development. I think that people should be educated more on VAT.I think that I would benefit from VAT. Persons who are not aware of VAT should be educated about it as soon as possible'.
Rahman Ali, miner
`I don't know anything about it but I am aware that VAT means value added tax. I think that we here in Guyana should give it a try because there are other countries that are using VAT. We are not ready for a lot of things here in Guyana but we have to give VAT a try. I believe that in time we will get to understand it. We just have to give it a try'.
Yonette Paddy, private sector employee
`VAT is both good and bad. On one hand the importers of commodities will gain from this system while on the other hand consumers will suffer. VAT will affect me because everything I buy I will have to pay 16% tax on that item. Guyana is not prepared for this and people need to be educated more about it. There are many people out there who really don't understand what VAT is'.